President Obama has asked for a 72% increase in cyber security funding for the IRS so they can effectively combat tax return identity theft:
Following raids on taxpayer coffers by identity thieves, the Obama administration would like to push $242 million into agency data analysis, IT controls, and victim support, among other things, according to new detailed spending figures.
In May, IRS officials disclosed that ID thieves gamed an IRS online tool to pull sensitive financial data on 100,000 taxpayers and ultimately claim about $39 million in their names. The tax agency unplugged the service, called Get Transcript, and it remains offline.
With new money, “the IRS would take especially aggressive steps to fight identity theft and stolen identity refund fraud,” budget documents state. “These include systems improvements and new information sharing with states and industry to help detect and prevent identity theft before tax refunds are paid.”